Behind the Balance Sheet

#19 The Value Investor

Apr 19, 2023
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ANECDOTE

Early Lesson Losing First Investment

  • Chris lost all his money on his first real investment in a Norwegian tanker company that went to zero.
  • This painful experience taught him early to focus intensely on reading and understanding financial statements.
ANECDOTE

Starting Firm With Experienced Client

  • Chris started his own investment firm before age 30 after winning over a highly experienced elderly client.
  • Convincing the client to sell expensive GE shares was a key early success demonstrating his value investing approach.
ADVICE

Read Every Footnote Carefully

  • Always read every footnote in financial statements, especially accounting policies and revenue recognition.
  • These details reveal crucial information often missed by analysts, providing an edge in valuation.
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